As per the researched report, the market for pawn shops is expected to expand at a compound annual growth rate (CAGR) of 4.3%, from USD 29.0 billion in 2022 to USD 43.0 billion by 2032. The blooming industry stands as proof of their reliability.
However, let’s be honest, a pawn shop won’t lend you the full market value of the collateral. So, follow these tips to ensure they offer you the best price against your valuables.
1. Research and select the right shop
Don’t select any random pawn shop closest to you. Since you’ll entrust your luxury items to this shop for a while, it’s always better to do your research.
Compare your options and seek a reliable luxury pawn broker with years of experience and expertise. They must have transparent business policies and be trusted market leaders in dealing with luxury assets.
2. Know what can be pawned
Make sure the luxury goods you want to pawn are actually valuable. The most common items are:
- Precious jewellery made out of gold, platinum, or silver, and valuable stones, including diamonds, emeralds, ruby, or opal
- Collectible silver and gold coins
- Luxury accessories, including watches and bags
For branded items, make sure the brand name is obvious on the goods to ensure a better price.
3. Study your item’s worth
Before you take your item to the pawnshop, learn about your luxury goods’ actual worth. For instance, if it’s jewellery, visit a reputable jeweller and ask them to appraise your goods.
If you’ll pawn branded goods and collectible coins, research the current market value of similar goods online.
4. Clean your items
If you spot obvious signs of wear and tear or dirt, you won’t get the best value. Even if it’s a highly desired item in the market, there will be no room for negotiation.
So, before stepping into a pawnshop, take time to clean your item. Use a soft cloth such as microfiber towel to gently clean the item. To get rid of dust and crusty particles, use a soft brush. Don’t rub it with any cloth to prevent scratches.
If there are any stubborn dark cracks, use soft and mild disinfecting wipes. Gently and slowly clean around the corners to avoid any damage. Polish it until it sparkles and is free of smudges.
If there’s any dent or scratch, try to get rid of them. If you’re not confident, you can also seek a professional to fix your items safely.
5. Look for the original documentation
If you have documents, such as authenticity certificates, receipts, or other accessories that came together with the luxury item, gather those. These can help you grab a better deal from the pawnshop.
In case you don’t have such documents, don’t fret. A reliable pawnbroker will determine the authenticity of your goods in no time and offer a good price.
6. Negotiate like a pro
If you’re new to pawning luxury goods, you may feel self-conscious about negotiating. Some even feel intimidated by a huge establishment. However, if you have researched and are certain about the value of your goods, you can be confident and try to haggle.
If the value they offer isn’t good enough, tell them that you’ve researched the price and give them a ballpark value you expect.
In certain cases, they might ask you how much you want for the article, be upfront about your price. Don’t ask them how much they are willing to give. If they name a way lower price, it won’t be easy to increase that.
Besides that, be calm and collected and never push the pawnbroker too much for a higher price or ask for an unrealistic value. Otherwise, you may have to return without any deal.
7. Stay honest
Pawnbrokers always check for damages in goods. However, they sometimes ask customers whether they should be aware of any damage on articles. This is their way to test you. Their willingness to negotiate depends a lot on your behaviour.
So, be honest about any damage, including scratches, smudges, or broken bits. This will help you foster a closer relationship with them. If you become a repeat customer, you’ll also get better prices than usual.
Conclusion
Pawning luxury items requires proper research, clean and valuable items, and great negotiation skills. So, follow these tips to make your pawning experience a hit and get the best value for your luxury items!
